Property development finance is used to fund new build residential housing and commercial development projects.
As an independent Property Development Finance Brokers, we work with Property Investors and Developers to source the funding they need.
Are you looking for Development Finance to start your next project?
This could include ground up, large conversions and any other residential or commercial significant development projects.
- Property Development Finance
- Residential Developments
- Property Development Funding
- Commercial Development Loans
- House Building & Construction
- New Build Funding In England
- Property Development Finance Manchester
We will help you compare different lenders and guide you through the application process.
Once your development is off the ground, we will continue to provide support and laisse with your chosen funding partner.
Development
Finance
Independent Property Development Finance Brokers
Development finance funds a build in stages rather than as a single lump sum. The lender releases a day one advance against the site, then further drawdowns as construction progresses, each one signed off by a monitoring surveyor. Interest is normally rolled up and repaid when the scheme is sold or refinanced.
That structure catches people out. You are not handed the full facility on completion, and you cannot draw for work you have not yet done. Drawdowns are paid in arrears against certified progress, so you need working capital to reach each certification point.
| Item | Typical position |
|---|---|
| Loan to gross development value | Up to around 65% of the finished value |
| Loan to cost | Up to around 85%, occasionally 90% with the right lender and track record |
| Day one advance against the site | Commonly 65% to 70% of the purchase price or site value |
| Build costs | Often funded in full, drawn in arrears against certified progress |
| Term | 12 to 24 months on most schemes, longer on larger ones |
| Interest | Usually rolled up and settled at exit rather than serviced monthly |
| Exit | Sale of the units, or refinance onto a term loan or a development exit bridge |
| Security | First charge over the site, personal guarantees, often a debenture |
| Time to arrange | Commonly 4 to 8 weeks, longer where planning or title is unresolved |
How drawdowns actually work
| Stage | What happens | When money moves |
|---|---|---|
| Site acquisition | Day one advance against the purchase price or the site value | On completion of the purchase |
| Build drawdowns | A monitoring surveyor inspects and certifies the work completed since the last visit | Monthly or at agreed milestones, always in arrears |
| Practical completion | Final drawdown released and any retention settled | On sign off |
| Exit | Loan and rolled up interest repaid | From unit sales or refinance, within the agreed term |
If sales run slower than the term allows, the usual route out is a development exit bridge, which repays the development lender and buys time to sell at the right price rather than the quickest one. Lender appetite also narrows sharply for a first scheme, which we cover on our page for first time developers.
We work for you as an independent property development funding broker, based in England UK.
Get help from start to finish, with quotes, applications and any paperwork required.
- Experienced Property Development Finance Broker
- Named Independent Relationship Manager
- Property Finance & Investing Made Simple
- Residential, Commercial, New Build
- Assistance With Mortgage Applications
Ring 0161 5469128 To Speak With A Development Finance Broker or fill in the form below
What Is Property Development Finance?
Property Development Finance is used to fund the construction of new build houses, apartments and commercial property. It may include the initial purchase of land and/ or the development costs paid in tranches.
We can assist both first time property developers and those with experience. Any type of project can be considered for funding, such as:
- New Build Residential Developments
- New Build Commercial Properties
- Large Commercial To Residential Conversions
- Ground Up Property Development
Once your property development project is complete, we can assist with both development exit Bridging Loans, Buy To Let Mortgages and Commercial Mortgages.
Types of Development Finance
There are a large number of different Property Development Financiers in the UK and a wide range of products to suit different needs.
We can help you access what options are available for your unique circumstances.
Common types of Development Funding include:
Senior Debt Development Finance
Senior Debt Development Finance is the most common type of property development loan. The lender will take a first charge over the land/site being developed as their security for the loan.
Typically you can fund up to 65% of the Gross Development Value (GDV), max 80% of the total project cost. The borrower would usually need to inject some of their own funds towards the purchase of the land/property.
There are lenders who do consider first-time/inexperienced property developers, although more experienced developers may benefit from better rates.
- Residential Developments
- Mixed Use Development
- 100% Commercial
- Student Accommodation
- Leisure Projects
- Care Homes
- Industrial/Office Developments
We can access a large range of first charge development finance lenders, to source the right funding partner for your circumstances.
Stretched Senior Debt
Stretched Senior Debt is just a first charge development facility that provides a larger LTV of funding that a typical facility may allow.
This could be up to 75% GDV on a first charge basis and up to 100% LTC
Mezzanine Finance
Mezzanine Finance is a loan secured using a “Second Charge” against the development behind a Senior Debt Development facility.
This type of second charge development finance loan is used to plug any short-fall in funding from the first charge lender. Therefore a higher percentage of the Gross Development Value can be funded.
Mezzanine finance if more expensive than standard “senior” development finance.
Joint Venture Development (JV) Finance
It may be possible to fund up to 100% of a project by partnering with a JV or Equity partner.
The JV partner would be a part owner of the project, either as a first or second charge holder and would take a share of the profits upon completion.
Apply Now For Property Development Finance
Fill in the form below and one of our property development finance brokers will be in touch straight away.
Property Development Finance Manchester
If you are a local property developer in Greater Manchester or North West England, we offer a face to face service. There has been a huge boom in property development in around Manchester city centre and at Bolton Business Finance we are perfectly placed to assist.
We can arrange site visits, office meetings and have a local knowledge that will help the process of applying for finance.
Get in touch today and speak with a local development finance broker on 0161 5469128